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Saturday, October 1, 2022

Bitcoin Tests Vital Support Zone For $30,000: Momentum Traders And Whales Accumulating At Low Levels

The continuing Bitcoin cryptocurrency market sell-off escalated amidst panic on Monday as Bears pushed prices too low levels. Bitcoin lost around 12% on trade and slid down below $30,000 in early Tuesday trading hours. This latest decline caused the biggest cryptocurrency to hit its lowest level in 10 months.

Investor sentiment was adversely affected by a host of factors that include the rise in inflation rates, aggressive tightening policy exhibited by the Federal Reserve, the slide in the stock market, and genuine concerns over the TerraUSD stable coin that lost its $1 perch.

Bitcoin Has Continued Going Down Since the End Of April

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BTC slid below the rising channel in the last week of April, continuing in its southward movement since. It is an indication that bears do not intend to forego their firm advantage. BTC prices have gone down even below the acute support level ($34,587). But the bears are in for a stronger challenge when Bitcoin reaches a lower level.

The RSI (Relative Strength Index) is pointing northward and the location at 24 gave a picture of an extremely oversold condition. This suggests that we are in for a reverse in trend.

Bitcoin prices are trading at $30,667 even as bulls struggled to defend their support at a psychological level of $30,000.

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Thus, if there is a rebound at the current price levels, the relief rebound could face a barrier of $34,587. And across that rate, Bitcoin may surge to take on overhead stress from the level of $41,000. This remains a significant level that should be watched carefully because this is where the Simple Moving Averages over the 50 and 100 days appear to converge.

As prices break over that level, they may again enter a rising channel. It is a complete confirmation of an uptrend. And if the prices go down from their $41,000 perch, it indicates that negative sentiments persist and dealers are setting rallies. This could move the price towards the low of July at $29,260 and then down to the psychological level of $20,000.

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